New York (CNN Business)Recreational marijuana is legal in Canada as of Wednesday. And investors seem to have the munchies for cannabis stocks.
Shares of Canadian cannabis companies Canopy Growth (CGC), Cronos (CRON) and Tilray (TLRY) — which trade in the United States — have soared in the past week — and all year for that matter.
But they have all been extremely volatile and they plunged Wednesday too, a classic case of investors buying the rumor and selling the news.
The stocks of two other Canadian companies — Aurora Cannabis (ACBFF) and Aphria (APHQF) — have been on a roller coaster ride lately as well, mainly due to speculation that big consumer products companies may be looking to invest in them.
‘Watershed moment’ for marijuana
Michael Gorenstein, CEO of Cronos, wouldn’t comment when asked by CNN’s Julia Chatterley on the First Move show Wednesday about whether Cronos was looking to partner with a larger company.
But he said that legalization in Canada is a “watershed moment” for the industry and he expects that there will be more interest in legalizing marijuana worldwide.
“This is so meaningful. It just gets the ball rolling. We see regulatory tailwinds globally,” Gorenstein said.
Nick Kovacevich, CEO of KushCo Holdings (KSHB), which makes packaging and marketing materials for marijuana companies, told CNN Business that there is a significant opportunity in the United States.
“Things are moving faster than many people think,” Kovacevich said, noting that several polls are showing Democrats could take control of the House in the upcoming mid-term elections.
If that happens, Kovacevich thinks there could be more progress on changing federal laws about cannabis.